Question

Switching from sole-proprietor to LLC mid year - How do I pay estimated taxes

Forum|Forum|2 years ago
April 25, 2023
1 reply
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I am self-employed. I created an LLC in March and switched from getting paid through my SSN to my new EIN. Now I am confused about paying my estimated taxes. Do I need to make separate payments under my SSN and EIN? Do I make my first quarter payment attached to my SSN and then my later ones attached to my EIN or can I make all my payments now attached to my EIN? Will I be receiving 2 different 1099s at the end of the year from the companies I worked with before and after creating the LLC? I am in North Carolina. Thank you in advance for your answers.

Not A Product Question

leeloo

Yes, you can make estimated payments under your EIN. Unless you are electing to be taxed as a corporation, there is substantially no difference taxwise changing to an LLC. You are by default taxed as a sole proprietorship and are still a disregarded entity.